Viet Nam: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranche 2

Sovereign Project | 39500-033


ADB is helping Viet Nam build a second mass rapid transit line (MRT2) in Ho Chi Minh City.  The project involves the construction of construction of MRT2 main line and depot. It is expected to help reduce traffic congestion and accidents, and improve the city's air quality.

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Project Name Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranche 2
Project Number 39500-033
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2956-VIE: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranche 2
Ordinary capital resources US$ 500.00 million
Loan: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranche 2
KfW Bankengruppe US$ 276.60 million
European Investment Bank US$ 195.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Transport - Urban public transport

Gender Equity and Mainstreaming Effective gender mainstreaming

The purpose of the project is to support the local economic development in HCMC by initiating the first stage of a mass transit transport system, that will improve urban livability due to constant urban degradation and traffic congestion, reduce traffic accidents, and improve the city's air quality.

Viet Nam's economy is growing rapidly. This is especially the case in large cities, most notably Hanoi and Ho Chi Minh City (HCMC), which are the primary centers of economic growth and will remain so for the foreseeable future. The large cities have grown rapidly over the last 15 years and are expected to continue to grow relative to the rest of the country, both in terms of population and economy. HCMC is the largest city in Viet Nam with an area of about 2,100 sq. km. and a population that has grown at an average of 2.4% over the last 15 years, to about 5.5 million in 2003, or approximately 6% of Viet Nam's total population. On current trends, the city's population is forecast to reach 7.2 million by 2020.

Project Rationale and Linkage to Country/Regional Strategy

Although cars are becoming more common, motorcycles dominate transport in HCMC, and serve the population well, providing the poor with mobility than experienced by many non-motorized citizens in richer countries. Inspite of explosive growth in motorcycle ownership, congestion has remained tolerable. Traffic accidents, however, have become a serious concern. Increasing vehicle numbers have also lead to air quality degradation that will intensify with increasing congestion.

The People's Committee in HCMC is aware of these challenges and has developed plans for the orderly development of the city based on designated satellite growth areas and rapid development of public transport to cater for a much lager share of passenger traffic, from about 5% today to 45% in 2020.

The CSP for Viet Nam includes sustainable growth as one of the strategic priorities. If the economy is to continue growing then the major engines of this growth must not be starved of adequate transport infrastructure.

Impact Competitive MRT2 services along the project corridor
Project Outcome
Description of Outcome MRT2 operations and maintenance system effectively implemented
Progress Toward Outcome O&M system framework being developed
Implementation Progress
Description of Project Outputs Construction of MRT2 main line and depot
Status of Implementation Progress (Outputs, Activities, and Issues) Due to changes in design, bidding will commence only in 2016
Geographical Location Ho Chi Minh City, Viet Nam
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

Existing Environmental Conditions: (i) Air Quality: current dust levels exceed GOV limits, (ii) Noise and Vibration: ambient noise exceeds GOV limits, (iii) Surface Water : Tham Luong Canal is contaminated, and (iv) Groundwater & Soil : nearly all parameters within GOV limits.

Impacts from Construction: (i) Air Quality - Construction Equipment creating dust and emissions through building removal and excavation; Mitigation thru Dust control plan, enclosing site, watering/sweeping, emission control system, dust covers, (ii) Noise and Vibration - Increase during construction; Mitigation thru Noise control plan, enclosing site, muffled equipment, day only construction, (iii) Geology and Soils - 1.9 million m3 of soil to be removed; Mitigation thru Spoils disposal plan, 1.45 million m3 recycled and sold, 0.45 million m3 to approved spoils disposal site, (iv) Hydrogeology Groundwater contamination, blocking groundwater flows, loss of wells; Mitigation thru avoidance of excessive pressure, testing for quality monitoring, non-toxic soil additives, local wells at spoils disposal site > 200m deep, (v) Subsidence and settlement Expected 10mm at centerline and 16mm edge of tunnel; Mitigation thru monitoring program for buildings and roads, retaining wall for deep excavation, (vi) Water and Vegetation Resources Pollution of Tham Luong canal, loss of trees, spoils site vegetation loss; Mitigation thru Piers either side of canal, trees replaced, (vii) Traffic and Accessibility - blockage of traffic lanes at stations, equipment and materials impede traffic flows; Mitigation thru Traffic plan, public information program, materials stored off site or used immediately, (viii) Health and Safety - workers and public risks; Mitigation thru Occupational and Community Health and Safety Plan, Emergency Response Plan, public information program.

Operational Impacts: (i) Viaduct Noise and vibration: Mitigation thru noise shield along viaduct, noise barrier at Tan Binh station, continuously welded track, (ii) Underground tunnel noise telegraphing , site clearance for station building; Mitigation thru Noise attenuation at tunnel portal, (iii) Depot train movements, maintenance noise; Mitigation thru Slow travel (5-20 km/h), maintenance inside workshops

Cumulative Impacts: the project is (i) contributing to environmental sustainability initiatives by reducing vehicle trips and need to expand road network, (ii) preserving community livability and green space, (iii) encouraging pedestrian and bicycle traffic along the corridor, and (iv) reducing greenhouse gas emissions

Induced impacts: There is expected to be land use to change around the stations and the Depot, re-development around the interchange stations and positive community and economic benefits to HCMC

Involuntary Resettlement


Affected land: A total estimated 20 ha will be acquired for the Tranche 2 of the Project comprising 3.7ha land acquisition for Line 2 and the spur line and 16.3ha of privately occupied land for the Depot main area and resettlement site subject to ongoing land acquisition

Affected persons: A total of 428 households will be affected by land acquisition. Of these 56 will be physically displaced. The vast majority of affected households are impacted by Line 2. There will be 35 firms as well as smaller businesses that will be effected, which will also displace employees.

Types of affected land: The majority of land affected by Line 2 is residential (72%) while at the Depot site most of the affected land is agricultural (96%). Most of the land officially categorized as agricultural land at both the Depot and Line 2 areas is in fact idle, non-productive land.

Impacts on buildings: A total of 509 buildings will be affected by Line 2 and 17 by the Depot land acquisition. The vast majority of affected structures located along the alignment of Line 2 are situated within the official planning line for the road wherein no permanent structures are permitted. As such most of the affected buildings are temporary in nature.

Depot Main Area:

Compensation payments for lost assets based on District 12 People's Committee's decision made in 2004 for acquisition of affected area were updated 2008 based on results of a replacement cost study, prior to the preparation of the RF in 2010.

Record of losses: Affected property in compensation decisions is adequately recorded. Records/compensation decisions pending for 8 households and 2 factories.

Compensation: Land-based compensation is adequate. Cash compensation rates for land likely inadequate and requires replacement cost study

Housing compensation rates based on 2008 construction costs plus 30%.

Assistance: Households to be relocated need rental assistance allowance. Employees experiencing loss of employment at 2 factories should receive compensation for lost income and livelihood restoration assistance. Additional income restoration assistance for households losing productive agricultural land.

Indigenous Peoples No indigenous people's identified within the project area
Stakeholder Communication, Participation, and Consultation
During Project Design

Environmental: (a) MRT Alignment: (sessions in 2008 and 2011) - Identified traffic, air and noise quality concerns during construction and overwhelming support for the project at all sessions. (b) Spoils Disposal Site: (December 2011, February 2012) - There is 87% support the MRT2 project, 80% in favor of spoils disposal and major concern is the potential contamination of groundwater but there will be no significant adverse impacts with proper spoils disposal.


Mainline resettlement Surveys were conducted from June to July 2011, including (i) Inventory of Losses, (ii) Census, (iii) Socio-Economic Survey, and (iv) Replacement Cost Study. Consultations with affected households conducted in August 2011. Key information related to project and contents of resettlement plan mitigation measures was disclosed to affected households December 2011.

Depot area assessment was conducted September 2011 to February 2012 consisting of (i) site visits, (ii) review and analysis of recorded losses (land and non-land assets) and individual compensation plans, (iii) interview of District 12 Compensation Board, (iv) interview of 22 affected households (27% sample), (v) conduct of socio-economic survey of 22 households, and (vi) review to assess if compensation paid for lost assets was at replacement cost

During Project Implementation Not yet due
Business Opportunities
Consulting Services Nil

CP3: Tunnels and underground stations

CP4: Transition, elevated station, viaduct and spur line

CP6: Track Work and third rail

Responsible ADB Officer Yasushi Tanaka
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Ho Chi Minh City People's Committee
No. 1 Cuong Truong, Quoc te, District 3
Ho Chi Minh City
Viet Nam
Concept Clearance 01 Oct 2009
Fact Finding 10 May 2012 to 17 May 2012
MRM 15 Aug 2012
Approval 27 Nov 2012
Last Review Mission -
PDS Creation Date 17 Jul 2007
Last PDS Update 25 Sep 2015

Loan 2956-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Nov 2012 04 Jul 2013 02 Jan 2014 30 Jun 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 971.60 Cumulative Contract Awards
ADB 500.00 27 Nov 2012 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 471.60 27 Nov 2012 1.22 0.00 0%

Evaluation Documents

See also: Independent Evaluation

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